Hanoi housing violations worth 69.4 million USD

The Government Inspectorate finds many violations in housing projects developed in Hanoi between 2002 and 2014 (Photo: dantri.com.vn)

Hanoi (VNA) - The Government Inspectorate has detected violations
worth (69.4 million USD) in many housing projects developed in Hanoi between
2002 and 2014.

The violations and the poor quality of planning of residential areas were found
after the inspectors checked 38 out of 204 projects.

Housing plans were adjusted several times, leading to changes in the heights of
buildings and land use coefficient. In particular, the arbitrary adjustment of
plans affected the rulings and interests of the State, according to the
inspectors’ conclusion.

“This situation has led to difficulties in building a correlative urban
planning for the city," Tran Huu Loi, head of the inspection delegation,
told the Tien Phong (Vanguard) newspaper.

These violations benefitted investors because they were not obliged to pay more
land use fee or land rent as the adjustment of plans had been made in favour of
the investors, causing losses to the State budget, the Government Inspectorate
said.

Further, housing project developers did not fulfill their financial
obligations.

For example, the investor of the CT2 land plot under the Kim Van-Kim Lu New
Urban Area Project in Hoang Mai district did not pay land use fee equal to 733
billion VND (32.24 million USD), although it built houses for rent.

In many projects, inspectors found investors illegally altering land use and
construction plans, using more land but not paying land use fee for the
extended area.

At the time of inspection, many investors had not yet paid obligatory fees to
the State budget.

The Hanoi People’s Committee also miscalculated land use fee, while in some
cases, housing project investors did not fulfill all their financial
obligations, resulting in a shortfall of 6 trillion VND (266.6 million USD) for
the State budget.

On the basis of the inspection results, the Government Inspectorate has
proposed the Prime Minister direct the chairman of the city People’s Committee
to take measures to rectify shortcomings and violations in management of
construction investment and land use.

The committee needs to review and check project investors violating land use
and construction plans to handle the violations, it said.

Organisations and individuals also have to review their responsibility in
management, the Government Inspectorate added.-VNA